June 03, 2021 01:30 PM / Research@proshareng.com / Header Image Credit: EcoGraphics
Nigerian Equities Market closed the month of May 2021 in the red zone as market halts bargain hunting witnessed in the previous month of April 2021. The NSEASI dipped by -3.51% as against +2.02% gain recorded in the month of April 2021 while the NASD USI also closed southwards with -5.17% loss recorded at the end of the month under review as against +5.74% gain in April 2021.
YTD, the NSEASI ended the month under review in the negative territory with -4.55% loss while the NASD USI closed northwards with +2.19%.
On market development, regulation and investors protection, the Securities and Exchange Commission issued a cease and desist order to Crodwyvest on its proposed Halal Fund, the commission directed Crowdyvest to stop the launch and operations of the Crowdyvest Halal Fund and any other investment activity which involves soliciting investments and deposits from the public.
The notice also served as a reminder to the investing public to also, regularly, check, confirm and verify the registration status of entities offering investment product with the Commission and entities offering savings products with the Central Bank of Nigeria.
Also, the commission, (SEC), in an efforts to ensure investor protection while encouraging innovation in the conduct of securities business stated that the rules governing Crowdfunding business in Nigeria came into effect on the 21st day of January, 2021 and in line with the transitional provisions of the Rules, all persons/entities operating an investment crowdfunding portal/digital commodities investment platform prior to the commencement of the rules were expected to restructure all operations in accordance with the requirements of the rules and apply for registration not later than 90 days from the Effective Date.
While the transitional period of 90 days elapsed on the 21st day of April, 2021, SEC in its statement directed all existing investment crowdfunding portals/digital commodities investment platforms to note the requirements and eligibility criteria for raising funds through and/or operating a Crowdfunding Portal and comply with the registration requirements or cease operations by the 30th of June, 2021, failing which the operations of such platform would be categorized as illegal and attract regulatory sanction as stipulated in the Rules.
In this edition of The Nigerian Capital Market Service Report, we continue the updates of our data section with latest figures on Economic indicators & Upcoming Events in the market and economy. This is to ensure that we deliver a comprehensive capital market service report that helps cover and track innovations, developments as well as service issues in the market effectively.
In all, the May 2021 SSS Quality Report is a snapshot and aide memoire of developments in our market - tracking milestones that the investing public should be aware of. Do feel free to share your opinions/observations and feedback with us vide firstname.lastname@example.org
For: Analyst Editorial Board
Executive Director, Research Services
Chart 1: Capital Market Size By Exchanges - May 2021